Norway is actually pretty middle-of-the-road, in line with France and Greece for example.
https://ec.europa.eu/eurostat/statistics-explained/index.php...
Ridiculous compared to what? Burning fuel at every home?
I get the distaste of needing to power up coal plants, but if you want to look at CO2 output of a mixed grid with fossil fuels + renewables vs direct fuel consumption you'll find the CO2 output is going to be much lower on average for the heat pump + seasonal coal plant fire up.
That's because even if wind can't fully power all your heat pumps, it is powering a large chunk of them.
Electricity prices in Norway is not low because of oil. Oil/gas is not used for heating, and prices are higher than other places. So if anything the electric prices are higher as oil products are more expensive in Norway compared to most other places.
If Google is telling me correctly the kwh price for electricity in Norway is around 12 Eurocents. This is very cheap! In Germany it is currently 30 Cents, last winter even 50 Cents. And Germans getting lower salaries..
So what. A heat pump makes 3-4 kWh of heat energy out of 1 kWh of electricity, and a coal plant, especially a combined district heat-power coal fire plant, has a far higher efficiency than any domestic gas/oil boiler can achieve.
This is bullshit. Domestic boilers have a thermal efficiency of around 93%. The most modern coal plants have electrical efficiencies around <47% on 100% and around 43% on 50% output. Combined heat-power plants have a combined efficiency of around 90%. And the centralised versions have the transport loss.
Getting all the calculations right is really complicated.
Edit: the annual mean of the heat pump COP is not 3-4, either.